Common use of Priority Distributions Clause in Contracts

Priority Distributions. Notwithstanding anything to the contrary in Section 4.1, for each Fiscal Year of the Company, Net Cash Flow shall be distributed on at least an annual basis as follows: (a) First, to any Member holding a Preferred Return in an amount equal to the Member’s Accumulated Preference, less any amount previously distributed to such Member pursuant to this Section 4.2(a). Such distribution shall be treated as a preferred return pursuant to Section 1.707-4 of the Regulations. (b) Second, any remaining Net Cash Flow shall be distributed pro rata to the Members in accordance with each Member’s Percentage Interest.

Priority Distributions. Notwithstanding anything to the contrary in Section 4.1, for each Fiscal Year of the Company, Net Cash Flow shall be distributed on at least an annual basis as follows: (a) First, to any Member holding a Preferred Return in an amount equal to the Member’s 's Accumulated Preference, less any amount previously distributed to such Member pursuant to this Section 4.2(a). Such distribution shall be treated as a preferred return pursuant to Section 1.707-4 of the Regulations. (b) Second, any remaining Net Cash Flow shall be distributed pro rata to the Members in accordance with each Member’s 's Percentage Interest.